USD/JPY struggles to find enough momentum to break above 107

  • 10-year United States (US) Treasury bond yield stays relatively calm on Monday.
  • US Dollar Index posts modest recovery gains below the 99 mark.
  • Wall Street looks to open the day in the negative territory.

The USD/JPY pair lost nearly 100 pips last week and started the new week in a quiet manner. As of writing, the pair was trading at 106.85, losing 0.1% on a daily basis.

Last Friday, the labour market data from the United States painted a mixed picture. Although the unemployment rate fell to its lowest level in nearly 50 years at 3.5%, nonfarm payrolls increased less than expected and the annual wage inflation dropped to 2.9%.

The US Dollar Index struggled to gain traction after the data and registered a weekly loss of 0.3% as investors price the expectation of the Federal Reserve cutting the policy rate again in October. According to the CME Group FedWatch, there is an 80% probability of a 25 basis point rate cut at the end of this month.

Market sentiment is likely to drive the pair

Meanwhile, major equity indexes in the United States capitalized on rate cut expectations and posted strong gains on Friday to make it difficult for safe-haven JPY to outperform the Greenback. However, reports of a second whistle-blower coming forward over the weekend with regards to US President Trump’s dealings with Ukraine, Wall Street might start the week on a negative note. At the moment, the S&P 500 Futures is down 0.35% on the day.

There won't be any significant macroeconomic data releases from the US on Monday. Although Federal Open Market Committee (FOMC) Chairman Powell is scheduled to deliver a speech at 17:00 GMT, he is unlikely to comment on the policy outlook.

Technical levels to watch for


Today last price 106.84
Today Daily Change -0.09
Today Daily Change % -0.08
Today daily open 106.93
Daily SMA20 107.7
Daily SMA50 106.99
Daily SMA100 107.71
Daily SMA200 109.1
Previous Daily High 107.13
Previous Daily Low 106.58
Previous Weekly High 108.48
Previous Weekly Low 106.48
Previous Monthly High 108.48
Previous Monthly Low 105.74
Daily Fibonacci 38.2% 106.92
Daily Fibonacci 61.8% 106.79
Daily Pivot Point S1 106.63
Daily Pivot Point S2 106.33
Daily Pivot Point S3 106.08
Daily Pivot Point R1 107.18
Daily Pivot Point R2 107.43
Daily Pivot Point R3 107.73



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News